GAB is correlated at 0.80 % to consumer discretionary, if you check the chart you will understand why GAB has been holding the 6.58-7.05 range ( bouncing back and forth the Bollinger band area) and making some hidden RSI divergence to do so. As long as XLY does not roll over on that phenomenal rally GAB will not move, since i think it is safe to consider that XLY will not double the range again the next year and GAB has been just so weak since may i think you can have a try as soon as it eventually does, but i dont like the short really, as long as it does not break the range (under 6.38) it's just wasting good capital allocation), but long term this still looks bullish. refer to chart.
AlexandreFF
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Thanks BEI, i might be too bad to understand everything in your chart, i still have a lot to learn but thank you ! My short is confirmed then
BEI
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this is my opinion, you should not trade on it
AlexandreFF
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I trade on simulator don't worry !
Technician
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Bearish Abandoned is a three-candle pattern, first a strong bullish candle then a clear gap higher ,the second candle is a doji, then a gap lower and a bearish candle. This not the case here. Good luck
AlexandreFF
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Ok technician thanks ! Good to understand i'm not a pro just 15 years old learning
QuantitativeExhaustion
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Do you recognize the divergence?
matt_forex
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I'm seeing divergence, which supports his short, but there is decent support in the 6.53 area, not to mention the 100MA could create additional support. so.....
AlexandreFF
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You might be right, i will watch closely the 100 MA thanks matt !